There are banks everywhere and all of us have at least one account with at least one bank that is there in our country.
When we speak about a country there are a lot of banks to choose from.
So it is quite normal for the people or the customers of the bank to close an account and switch to another bank. It is always a good decision to get rid of the things we are not using anymore.
In the same way, if you have decided to close your old bank account then that is a great decision. There are several steps that you need to follow while closing an account.
I will tell you about the major steps that you have to follow before you close an account. Let us check them out.
Stop all the Payments
We will be using our bank accounts for making the payments on day to day basis. And sometimes we set the payments which are recurring in nature.
This means if you permit the biller to deduct the money from your account. Then there is no more intervention required from your end.
The biller will be able to collect the money from your bank account directly. We use this for the bill payments like electricity, internet, etc.
Everything sounds great. But this can turn bad if you don't stop all the payments.
Your bank will not inform your biller that your account has been closed or has been deactivated. So your biller will try to deduct money from the account.
It is very common for a very obvious reason and that is your account no more exists. So you have to make sure you stop all the payments.
Learn How Your Bank Allows to Close the Account?
Not all the bank allows you to close the account in every way. There are a lot of different ways that can be followed.
So the next thing you have to do is you have to do a little research. And learn the different ways to close the account in your bank.
There are a lot of banks that allow closing the account online. So if this is the case with your bank. Then that will be very helpful for you.
The need to visit the bank will be eliminated. But some banks do not allow the customer to close the account online. They require the customer to step into the branch and complete the formalities.
You also need to check if your bank charges any fees to close the account.
Switch to Another Bank
It is really hard to survive without a bank account so why get into a problem?
Instead of that, you can switch to another bank before you break up with your existing account. This sounds very unimportant at the moment.
But you should understand that this is very important.
Now let us assume that you have closed your existing account just now and you have stepped out of the bank. Suddenly you get a call from someone.
And the call is about your paying someone $100 or any other amount. But how will you do it? Do you remember you don't have a bank account? The one you had has just been closed by you.
No matter how urgent it is. But you can not do it just because you don't have an account with you. To avoid such circumstances you should have an account with you.
So instead of getting into such a circumstance, you can switch to another bank. But before opening a new account make sure you choose a bank that fits your needs.
Update the Details of Your New Bank Account
As already discussed you should switch to a new bank. Once you are done doing that you will receive the account credentials like your account number, routing number, etc.
These are the details which you need to use your bank account. So now what you have done is update the details of your new bank account everywhere you pay and get paid using the bank account.
For example, if you are working for a company that pays you the salary directly into your bank account at the end of the month.
Then if you want to receive it without running into trouble. Then you will have to inform your employer about your new bank account.
Because there is no chance that your previous bank will inform your employer about your closed account. After all, it is not the duty of the bank at all.
It is your duty to inform your employer and provide the details of your new bank account. If you don't do it. Then your employer will proceed with the payment.
And ultimately the payment will fail. So make sure that you update the details of your new bank account everywhere you pay and get paid with the help of your bank account.
These are the major steps you should follow before you close your bank account.